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📊 Manyavar (Vedant Fashions Ltd.) Q3 FY25 Earnings

Lesson 79/151 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 Manyavar (Vedant Fashions Ltd.) Q3 FY25 Earnings

🔹 1. Key Financial Highlights

💰 Revenue Growth: ₹5,113 million in Q3 FY25, up 📈 7.8% YoY from ₹4,745 million in Q3 FY24.
💵 Profit After Tax (PAT): ₹1,580 million, 📊 marginal growth from ₹1,577 million in Q3 FY24.
📈 Gross Margin: 67.3% (Industry-leading profitability).
📊 EBITDA Margin: 47.4% in Q3 FY25 vs. 48.4% in Q3 FY24.
✅ PAT Margin: 30.9% in Q3 FY25 vs. 33.2% in Q3 FY24.

🏬 2. Store Expansion & Sales Performance

📍 Retail Expansion: 🚀 16 new exclusive brand outlets (EBOs) in Q3, including 2 Twamev stores.
🏢 Total Retail Footprint: 1.75 million sq. ft. (666 EBOs across 255 cities).
📊 Same-Store Sales Growth (SSSG): 📈 +2.6% YoY for Q3 FY25.
🛍️ Retail Sales Growth: 📈 +9.0% YoY.

📊 3. Profitability, Liquidity & Solvency

💰 Profitability Metrics:
🔹 EBITDA Margin: 47.4% (slight dip YoY).
🔹 PAT Margin: 30.9%.
🔹 Gross Profit: ₹3,439 million (+6.9% YoY).

💵 Liquidity Position:
✔️ Strong cash reserves & asset-light model.
✔️ High operating cash flow, ensuring financial stability.

💳 Solvency Metrics:
✔️ Low Debt: Debt-light capital structure.
✔️ Interest Coverage Ratio: Strong, indicating robust ability to service liabilities.

💰 4. Valuation Analysis (CMP ₹926)

📈 Trail Earnings Per Share (EPS) (TTM): ₹16.54.
📊 P/E Ratio: 56x (Premium valuation).
📊 Return on Capital Employed (ROCE): 85.3% (Industry-leading).
📉 Asset Turnover: Efficient utilization supports high return ratios.

📅 5. Near-Term & Long-Term Outlook

🔸 Near-Term Outlook:

📉 Muted Growth Expected in Q4 FY25 due to fewer wedding dates.
📍 Expansion Focus: Retail footprint expansion in Tier 2 & 3 cities to drive moderate growth.
🚫 No Discounting Strategy helps sustain premium brand positioning.

🔹 Long-Term Outlook:

💍 Sustained demand for premium wedding & ethnic wear.
👗 Growth in women’s wear (Mohey brand)💃 is a key long-term driver.
🌎 International Expansion: USA, UAE, Canada & UK provide future growth avenues.
📦 Tech-driven Inventory Management ensures efficiency.

📊 6. Investment Perspective

🚀 Bullish Case (Positive Factors)

✔️ Market Leader in premium ethnic wear 🎯.
✔️ High Margins & Strong Cash Flow 💰.
✔️ Asset-Light Model ensures scalability 📈.
✔️ Premium Pricing Strategy 🏷️ (No deep discounts).
✔️ Expanding women’s & premium segments (Mohey, Twamev, Diwas).

⚠️ Bearish Case (Risks & Concerns)

❌ Premium Valuation (54.3x P/E) – limits short-term upside.
❌ Slow SSSG Growth (+2.6%) suggests challenges in existing store performance.
❌ Competition from unorganized & online brands.
❌ Macroeconomic factors & discretionary spending trends may impact sales.

🎯 7. Recommendation for Investors

📌 For Long-Term Investors: Manyavar remains a strong compounder with high margins & consistent growth 📈.
📌 For Short-Term Investors: Monitor SSSG improvement & expansion pace before taking new positions at current valuations 🔍.
📌 At CMP ₹926: Fairly valued with moderate upside potential 📊. Accumulate on dips 📉.

📢 Disclaimer & Disclosure Statement

Important Investor Advisory Notice

This research analysis is for informational purposes only and should not be considered as financial, investment, or legal advice. The information provided herein is based on publicly available financial reports, market data, and our analysis. Investors are advised to exercise caution and discretion before making any investment decisions.

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Piyush Patel

Product Designer

4.75

Profile

Class Sessions

📊 Manyavar (Vedant Fashions Ltd.) Q3 FY25 Earnings

📊 Manyavar (Vedant Fashions Ltd.) Q3 FY25 Earnings

🔹 1. Key Financial Highlights

🏬 2. Store Expansion & Sales Performance

📍 Retail Expansion: 🚀 16 new exclusive brand outlets (EBOs) in Q3, including 2 Twamev stores. 🏢 Total Retail Footprint: 1.75 million sq. ft. (666 EBOs across 255 cities). 📊 Same-Store Sales Growth (SSSG): 📈 +2.6% YoY for Q3 FY25. 🛍️ Retail Sales Growth: 📈 +9.0% YoY.

📊 3. Profitability, Liquidity & Solvency

💰 Profitability Metrics: 🔹 EBITDA Margin: 47.4% (slight dip YoY). 🔹 PAT Margin: 30.9%. 🔹 Gross Profit: ₹3,439 million (+6.9% YoY).

💵 Liquidity Position: ✔️ Strong cash reserves & asset-light model. ✔️ High operating cash flow, ensuring financial stability.

💳 Solvency Metrics: ✔️ Low Debt: Debt-light capital structure. ✔️ Interest Coverage Ratio: Strong, indicating robust ability to service liabilities.

💰 4. Valuation Analysis (CMP ₹926)

📈 Trail Earnings Per Share (EPS) (TTM): ₹16.54. 📊 P/E Ratio: 56x (Premium valuation). 📊 Return on Capital Employed (ROCE): 85.3% (Industry-leading). 📉 Asset Turnover: Efficient utilization supports high return ratios.

📅 5. Near-Term & Long-Term Outlook

🔸 Near-Term Outlook:

📉 Muted Growth Expected in Q4 FY25 due to fewer wedding dates. 📍 Expansion Focus: Retail footprint expansion in Tier 2 & 3 cities to drive moderate growth. 🚫 No Discounting Strategy helps sustain premium brand positioning.

🔹 Long-Term Outlook:

💍 Sustained demand for premium wedding & ethnic wear. 👗 Growth in women’s wear (Mohey brand)💃 is a key long-term driver. 🌎 International Expansion: USA, UAE, Canada & UK provide future growth avenues. 📦 Tech-driven Inventory Management ensures efficiency.

📊 6. Investment Perspective

🚀 Bullish Case (Positive Factors)

✔️ Market Leader in premium ethnic wear 🎯. ✔️ High Margins & Strong Cash Flow 💰. ✔️ Asset-Light Model ensures scalability 📈. ✔️ Premium Pricing Strategy 🏷️ (No deep discounts). ✔️ Expanding women’s & premium segments (Mohey, Twamev, Diwas).

⚠️ Bearish Case (Risks & Concerns)

❌ Premium Valuation (54.3x P/E) – limits short-term upside. ❌ Slow SSSG Growth (+2.6%) suggests challenges in existing store performance. ❌ Competition from unorganized & online brands. ❌ Macroeconomic factors & discretionary spending trends may impact sales.

🎯 7. Recommendation for Investors

📢 Disclaimer & Disclosure Statement

Important Investor Advisory Notice

Piyush Patel

Class Sessions

📍 Retail Expansion: 🚀 16 new exclusive brand outlets (EBOs) in Q3, including 2 Twamev stores.
🏢 Total Retail Footprint: 1.75 million sq. ft. (666 EBOs across 255 cities).
📊 Same-Store Sales Growth (SSSG): 📈 +2.6% YoY for Q3 FY25.
🛍️ Retail Sales Growth: 📈 +9.0% YoY.

💰 Profitability Metrics:
🔹 EBITDA Margin: 47.4% (slight dip YoY).
🔹 PAT Margin: 30.9%.
🔹 Gross Profit: ₹3,439 million (+6.9% YoY).

💵 Liquidity Position:
✔️ Strong cash reserves & asset-light model.
✔️ High operating cash flow, ensuring financial stability.

💳 Solvency Metrics:
✔️ Low Debt: Debt-light capital structure.
✔️ Interest Coverage Ratio: Strong, indicating robust ability to service liabilities.

📈 Trail Earnings Per Share (EPS) (TTM): ₹16.54.
📊 P/E Ratio: 56x (Premium valuation).
📊 Return on Capital Employed (ROCE): 85.3% (Industry-leading).
📉 Asset Turnover: Efficient utilization supports high return ratios.

📉 Muted Growth Expected in Q4 FY25 due to fewer wedding dates.
📍 Expansion Focus: Retail footprint expansion in Tier 2 & 3 cities to drive moderate growth.
🚫 No Discounting Strategy helps sustain premium brand positioning.

💍 Sustained demand for premium wedding & ethnic wear.
👗 Growth in women’s wear (Mohey brand)💃 is a key long-term driver.
🌎 International Expansion: USA, UAE, Canada & UK provide future growth avenues.
📦 Tech-driven Inventory Management ensures efficiency.

✔️ Market Leader in premium ethnic wear 🎯.
✔️ High Margins & Strong Cash Flow 💰.
✔️ Asset-Light Model ensures scalability 📈.
✔️ Premium Pricing Strategy 🏷️ (No deep discounts).
✔️ Expanding women’s & premium segments (Mohey, Twamev, Diwas).

❌ Premium Valuation (54.3x P/E) – limits short-term upside.
❌ Slow SSSG Growth (+2.6%) suggests challenges in existing store performance.
❌ Competition from unorganized & online brands.
❌ Macroeconomic factors & discretionary spending trends may impact sales.